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Tuesday, October 18, 2016

Amazon To Start Selling Groceries

Some reports suggest that the online giant retailer is going to build real corner stores to sell food products in order to further expand into the grocery market. Amazon has grown into a $400bn company in the 22 years since its founding by multibillionaire Jeff Bezos in 1994. Now the company is reportedly going to build convenience stores and drive-through locations for customers to pick up their groceries ordered online. The company itself refused to comment on the rumors, which would follow its launch of a physical bookshop in Seattle last year. By the way, bookshops will also reportedly open in 4 other locations across the US.

According to speculations, the brick and mortar stores will be designed for customers signed up to Amazon Fresh food delivery service. The latter is currently available for $15 a month on top of Amazon Prime’s $99 annual fee. Amazon has been offering its Fresh food delivery service in a number of locations across the United States since 2007 and now is rapidly expanding the service. For example, new cities across the United States were added: the service isalready available in its home Seattle, New York, Washington, Boston, New Jersey, Philadelphia, Stamford, Baltimore and California.

Amazon has also gone international in grocery delivery: this past summer the company launched outside of the United States for the first time and started offering grocery delivery in north and east London. Amazon Prime members can get this service in the United Kingdom for extra £6.99 per month. Financial experts report that Amazon collected annual sales of more than $100bn in 2015 – more than double the amount it could get just 4 years earlier. Amazon’s net income totaled $600m.